The latest development is being described as a huge disappointment.
The preferred bidder for a long-awaited, new community nursing unit in Westmeath has withdrawn.
Construction was scheduled to begin on the 50-bed unit in Clonbrusk, Athlone later this year to replace St. Vincent's Care Centre.
The issue was flagged at the latest meeting of the Dublin Mid Leinster Health Forum.
Local Fianna Fáil councillor Frankie Keena says a new developer now needs to be found, further delaying the project and driving up costs.
The South Westmeath Hospice is also due to be accommodated on the new campus.
Councillor Keena says the future of St. Vincent's is also in doubt, depending on the results of a HIQA report into sanitary and facility standards due to be published this December.
He's says the latest developments are huge disappointment:
You can listen in full to Councillor Keena speaking to Midlands 103's Ellen Butler on Midlands Today here: